Proactive Investors - Shares in Symphony Environmental Technologies PLC (LON:SYMU) jumped 6% in early trade after the biodegradable plastics group provided upbeat commentary alongside its prelims.
The first quarter of the current year has begun well with the company projecting a return to profitability.
Investors were told Middle Eastern manufacturing and sales are on target, while an uptick in revenues was also flagged across its d2w and d2p product lines.
Significant reductions have been made in the administrative cost base, now standing 25% lower than in 2022, while distribution expenses have seen a substantial drop due to lower shipping rates and improved efficiencies from the Middle East factory.
The net impact has been a five percentage point improvement in gross profit margins.
Symphony also anticipates a substantial boost in sales and profitability in the near future, thanks to the upcoming commercialisation of several projects, as well as improving global business dynamics.
“After the unexpected and lengthy delays experienced during 2022, we are encouraged by the sharply improved momentum, activity and trading performance across the group and are confident that we will be able to announce further positive updates in the coming months,” said chief executive Michael Laurier.
For 2022, the company posted a loss of £6.15mln on revenues down around a third at £9.15mln.
At 8.41 am, the shares were changing hands for 7.69p, up 0.43p.